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News Breaks | | | | June 20, 2012 | | 10:23 EDT |  | WAG | Walgreen falls after firms unimpressed with Alliance Boots deal
Walgreen (WAG) stock is retreating after a number of research firms reacted negatively to the company's acquisition of a 45% stake in British drugstore chain Alliance Boots yesterday. The deal, which gives Walgreen the option to acquire a 100% stake in Alliance Boots in about three years, will not solve Walgreen's problems in the U.S., research firms Citigroup and Macquarie contended. The transaction creates execution risks, as Walgreen has limited integration experience and U.S. retailers have not historically acquired international companies, Citigroup said in a note to investors this morning. Moreover, the deal increases Walgreen's exposure to Europe, added the firm, which lowered its price target for Walgreen shares to $27 from $29 while maintaining a Sell rating on the stock. Similarly, research firm Macquarie contends that the transaction doesn't address Walgreen's deteriorating U.S. traffic trends and declining pharmacy volumes. The firm downgraded the stock to Neutral from Outperform and reduced its target on the shares to $34 from $38. In mid-morning trading, Walgreen fell $1.14, or 3.79%, to $28.95. | |
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News For WAG From The Last 14 Days Check below for free stories on WAG the last two weeks. |
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| May 20, 2013 | | 15:52 EDT |  | WAG | Walgreen downgraded to Market Perform from Outperform at Barrington
 Subscribe for More Information | | | May 17, 2013 | | 12:33 EDT | | WAG | AmerisourceBergen receives approval of Walgreens, Alliance Boots investment
AmerisourceBergen (ABC) announced that the parties have received regulatory approval of the previously disclosed agreement for Walgreen (WAG) and Alliance Boots GmbH to purchase an equity stake in the company. AmerisourceBergen continues to expect the new agreements to contribute an incremental $25B in revenues and approximately 20c in earnings per share in FY14, excluding the amortization of certain expenses related to the transaction and the warrants issued, certain non-recurring costs and a potential LIFO charge, and net of certain start up expenses. In addition, the company reiterated its expectations for financial performance for fiscal year 2013, which includes expected revenue growth in the 11%-13% range, and diluted earnings per share from continuing operations in the lower half of the range of $3.04 to $3.14, excluding certain expenses related to the relationship with Walgreens and Alliance Boots and the warrants issued, and the expected LIFO charge from onboarding of additional branded inventory. | | | May 13, 2013 | | 08:32 EDT | | WAG | Walgreens extends CVS Caremark network provider agreement
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